End of temporary insolvency measures
To support businesses from insolvency during the pandemic, temporary measures have been brought in earlier and will be phased out from 1 October. Small businesses and companies in financial disaster due to pandemic were protected from creditors since June 2020 through the Corporate Insolvency and Governance Act 2020.
New measures will be taken to help small companies/businesses so they can get back on their feet and get more time to trade their way back to financial health before creditors can take action to wind them up
To help smaller companies so they can get back on their feet, new measures have been brought that will also help them with more time to get back on their financial health before the creditors take any action against them. These measures will be a force until 31st March 2022.
It will also help the business that has been set up on rent. The existing measures will be applied to commercial landlords that will not allow them to sign winding-up petitions against the companies whose rents are in arrears due to the pandemic. However, if the businesses are able to pay then they have to pay the rent.